With the 2014 tax return season coming to a rapid close and if you’re a small business owner in particular, finding ways to reduce your income tax rates is always a great goal. While it might sound counterintuitive, one of the best things you can do, as the old saying goes, is “spend money to save money.”
Why? Because it’s a great way to reduce your adjusted gross income (AGI). Lower your AGI, and you owe less money in taxes to good ole’ Uncle Sam!
Small business owners who opt to spend money on something they really need BEFORE this season’s tax year deadline of December 31 may even be able to throw themselves into one of the lower income tax brackets, and therefore increase the likelihood of a receiving a tax refund. And who doesn’t love that?
When deciding what to spend your hard-earned money on this year, you may want to "think tech" by considering an upgrade to your PC in particular. A new Intel research study found that small business owners are keeping their PCs longer than was the case in previous years, which is actually costing them more in the long run.
In fact, investing in new technology and buying a new PC with better hardware, more RAM and greater network capabilities oftentimes costs less than it would be to repair an outdated one. Plus, the study found that older PCs have a huge negative impact on work performance and productivity and pose a much higher security risk.
So, if you’re thinking about your 2013 tax return and how you can make things work more in your favor when it comes to your taxable income...and you have some money to spend, buying a new PC might be the best investment you could possibly make.
Want to learn more about the most highly regarded PCs of 2013? This is a great place to start: http://www.pcworld.com/.